Tesla's "Robotaxi" Service Is Causing Confusion In California
Regulators say Tesla's claims about launching a "Robotaxi" service in the San Francisco Bay Area don’t match reality as the automaker offers human-driven rides under a limousine-style permit, according to new reports.
Key Points
- Despite Elon Musk’s promises of imminent autonomous robotaxis in the Bay Area, Tesla has not applied for required permits and is only offering human-driven, invitation-only rides.
- California officials flagged “public confusion” over Tesla’s claims, while the company also faces a lawsuit in Texas alleging its design trapped a crash victim in a burning Model Y.
- Musk’s robotaxi promises are central to Tesla’s $1 trillion valuation and his proposed massive pay package, but so far, the service remains limited pilot programs with human monitors.
In July, CEO Elon Musk proudly proclaimed on X that Tesla was preparing to roll out robotaxis in the Bay Area within months, quickly escalating the program after introductory small-scale trials in Austin, Texas.
But according to new reporting from Reuters, Tesla has not applied for the permits required to operate an autonomous ride-hailing service in California, a process that typically takes years. Instead, Tesla organized limited, invitation-only trips using human drivers. The program operates under a glorified limousine permit, which, according to state officials, does not allow for on-demand ride-hailing.
The California Public Utilities Commission, the regulator in charge of autonomous ride-hailing services, has asked Tesla to "properly and accurately" describe its service and clear up any "public confusion" between its human-driven operations in California and the autonomous ride-hailing service it operates in Texas.
Even in Austin, riders have only seen limited pilot rides, and those still require human monitors. During in-town rides, the Safety Monitor rides shotgun, but when the route takes the car on the highway, the Safety Monitor hops into the driver’s seat—in California, the Safety Monitor must always sit in the driver’s seat.
Just days after Tesla rolled out the invite-only program to select influencers and investors in Austin, the National Highway Traffic Safety Administration confirmed it is reviewing multiple incidents posted to social media that appear to show Tesla’s self-driving vehicles violating local traffic laws. This is starting to sound like the Autopilot saga all over again—with Tesla using “Robotaxi” more as a marketing term than a real product.
Alongside Texas and California, Nevada recently granted Tesla permission to test its Robotaxi service, marking the third state where the automaker has some form of regulatory permission to offer rides.
Arizona has also granted Tesla a permit to test autonomous vehicles with a safety driver, but officials have not approved its plan to test and operate without drivers. The automaker is also looking at Florida, which does not require specific operating permits.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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